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Customer feedback vital in ensuring business recommendations

Customer feedback vital in ensuring business recommendations
May 20, 2017

Ensuring that members and clients are loyal to a business is a result of satisfying and engaging them sufficiently so that they will recommend their positive experiences to friends and family.

According to PaySmart’s National Sales Manager Colin Walker, generating this loyalty is vital for business and asking customers essential questions, and being prepared to really listen to their answers and respond accordingly, is key to this process.

Speaking to Australasian Leisure Management, Walker explained “seeking feedback can be a little scary, mostly because it may not reveal the story you’d like to hear, but seeking and using feedback can be a vital business opportunity.”

“And it doesn’t have to be gathered through a 10-page survey or hour-long focus groups, I’m talking about gathering meaningful feedback by asking one simple question: would you recommend us to a friend?”

Walker sees that this question is at the heart of the Net Promoter Score system.

By asking this critical question a customer’s propensity to recommend a business on a scale from one to 10 can be gauged, and it can help determine:

• How many of  customers are ‘promoters’ - someone who’ll typically buy more from you and will recommend you to others
• How many are ‘detractors’ - customers who typically buy less, make negative comments and won’t recommend you
• And finally, those who are neutral towards your business.

Walker adds “there’s a little more to the process, but in a nutshell, by making the following calculation you can determine your Net Promoter Score - the percentage of promoters (scoring 9 and 10) minus the percentage of detractors (scoring from 0 to 6).

“The passives (scoring 7 and 8) are not counted for the sake of measuring the Net Promoter Score, but are still worth noting as you want to know how many customers you need to move into the ‘promoter’ category.

“Using the Net Promoter Score to better understand and harness the value of your customer base is a really exciting prospect that can genuinely improve your customers’ experience and, ultimately, drive growth and customer retention in your business.”

PaySmart offers clients the opportunity to get an NPS system up and running.

To find out more, click here to contact PaySmart via their entry in the Australasian Leisure Management Supplier Directory.

Colin Walker wrote about the key steps in running a successful member-based business in the May/June 2017 issue of Australasian Leisure Management.

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